I did a little more investigating.
Here is the Toyota FAQ entry about the warranty. See above post for link.
Quote:
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Hybrid-Related Component Coverage: Prius' hybrid-related components, including the HV battery, battery control module, hybrid control module and inverter with converter, are covered for 8 years/100,000 miles. The HV battery may have longer coverage under emissions warranty. Refer to applicable Owner's Warranty Information booklet for details.
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This
includes the Hight Voltage (HV) Battery. Looking at my owner's warranty booklet I see that in the great state of California (also Maine, Massachusetts, New York, and Vermont) the coverage extends out to 10 years/150,000 miles for the battery and 15 years/150,000 miles for the rest of the emission control equipment (p.20).
Federal regulations for Emissions control is considerably less than the state specified ones but I think the Warranty in the Toyota FAQ comes from the Toyota Warranty of the Hybrid System.
So I'm pretty sure the battery is covered and the extent of the coverage will depend upon the state.
Christian